FSB: Small firms beginning to experience recovery

Date: 30th June 2009

Small businesses hit hard by the recession are beginning to show signs of 'tentative recovery', according to the Federation of Small Businesses (FSB).

The FSB has been monitoring the impact of the recession on small businesses since September 2008.

In the ten months of data collection, small businesses hit their most difficult period at the end of last year but are now showing signs of improvement.

FSB data indicates that small firms are experiencing a rise in trade, with 23 per cent saying trade had improved.

In February this figure stood at 16 per cent.

Furthermore there has been a 15 per cent drop in the number of companies that cite the cost of finance as a concern, falling from 40 per cent at the end of last year to 25 per cent in June.

John Wright, FSB national chairman, said: "These figures show that despite the very many negative forces on [small firms], they are being cautiously optimistic and are looking to expand."

Over half of small businesses (57 per cent) say that are 'quite confident' about their future.